ANNEX H
UKTI REGIONS AND DEVOLVED ADMINISTRATIONS
ACTIVITY WITH BRAZIL
SOUTH WEST
H1. March 2006: The UKTI International Trade
Team (ITT) in Gloucestershire organised a Brazil awareness event—25
delegates.
H2. May 2006: Planned mission to Brazil
was cancelled and two companies undertook solo visits to the market.
H3. November 2006: UKTI ITT has agreed with
SWRDA and Global Watch to host an inward visit from a group of
Brazilian mobile content companies. The SW are very strong in
this sector. UKTI hopes to be able to attract a number of companies
for a match-making event. Southwest Screen (regional cluster group
for the media sector) are also keen and have already identified
some interested companies.
H4. In addition, UKTI SW has a number of
On line Market Introduction Service (OMIS) reports ongoing for
Brazil for clients in the region.
EAST OF
ENGLAND
H5. No activity.
SOUTH EAST
H6. Although there is currently no specific
activity by UKTI South East, the emergence of Brazil as one of
the BRIC economies is explicitly recognised in the region's new
Regional Economic Strategy. Furthermore, UKTI SE did send one
of its International Trade Advisers on an exploratory visit earlier
this year, and his report confirmed potential for most of UKTI
SE's key sectors.
Accordingly, Brazil Roadshows (similar to those
UKTI SE has run for China and India) are being considered, as
are a number of Outward Missions.
LONDON
H7. A Brazil Mission through the LCCI earlier
this year was cancelled (there were 120 expressions of interest
but only two sign ups). The main reasons given by the Chamber
for this are:
(a) lack of grants available (because Brazil
still does not qualify for market visit grant support as do India
and China); and
(b) the bureaucracy involved in the application
process.
To note here that there should be consistency
between the eligibility rules for our different products (ie,
Brazil does qualify for the Trade Awareness Programme (TAP) support,
but not market visit support); that said, because Brazil is not
a market for new exporters it tends to attract larger companies,
who have less need of funding. UKTI London is currently working
with the Chamber to try and change their "Missions = Grants"
mindset).
H8. Until recently Brazil was not considered
a priority market by UKTI; this, added to the fact that much of
UKTIs focus was on the smaller end of the SME market (ie, potential
Passport clients), meant that it attracted little interest (other
than that which could be stirred up by the ITT's two specialists).
This should now change as we begin focusing on larger companies
as we begin implementing the new UKTI strategy.
H9. UKTI London, therefore, does not have
any definite plans to put on any events linked to Brazil. However
it has discussed internally the possibility of putting on a "doing
business in Brazil" type event (similar to events it has
run on India and China) later in the year (budget allowing). However,
this idea has not even reached the drawing board yet.
YORKSHIRE AND
THE HUMBER
H10. UKTI YH is not planning anything specific
on Brazil in the near future but it is quite likely that it will
want to run an event on Brazil to coincide with a panel in Yorkshire
Insider (a regional business magazine) covering each of the key
markets over the next few months.
H11. The Brazil First Timers Programme was
launched by HRH Duke of York in September 2001 and lasted until
2003. It was operated by mid-Yorkshire Chamber and Lorraine Ellison
was the manager who ran the strategy and provided support to companies
over the two-year period. She had had quite a lot of experience
in Brazil and obviously Brazil First Timers gave her even more.
Around 50 companies took part and it was a real partnership between
the trade advisory group and the export promoter at the time.
It was an in depth support process that was very selective because
there was enough demand to outstrip the supply of places. As a
result there were a lot of good companies who attended and all
did well in Brazil. Companies paid £1,100 up front and much
of the support in market was provided by a consultant and not
through the post.
NORTH EAST
H12. UKTI North East facilitated an inward
mission and a number of visits from Brazil by the UKTI Commercial
Officer from Recife. The theme of the mission was aquaculture.
As a direct result of the mission, work is now ongoing to enable
a regional company, Seabait Ltd, based in Northumberland, develop
a joint venture in Brazil centred on the production of sustainable
aquaculture feed stocks for breeding purposes. Seabait hosted
the inward mission, which consisted of four Brazilian companies
and a representative from the Brazilian department of fisheries.
Seabait breeds and grows marine worms for use in aquaculture feeds,
sea angling and scientific research. In 2003 this former Passport
to Export company was awarded the Queen's Award for Enterprise
for Sustainable Development and also the Queen's Award for Enterprise
for International Trade.
H13. Brazil is a difficult market particularly
in the area of aquaculture as there are restrictions on breeding
non-indigenous animals. Further setting up a Joint venture is
difficult due to laws about the repatriation of profits outside
the country.
H14. The company is currently working with
the post in Recife to determine whether its potential joint venture
is worthwhile.
EAST MIDLANDS
H15. As a market generally Brazil is not
very suitable for new exporters. UKTI EM does not have a lot of
ongoing activity there. It does, however, have a maxi mission
planned for March 2007—aiming for 35 companies—and
its export club (East Midlands International Trade Association)
has an ABC of South America. There is also an existing, but rather
low level, champion role in the region, which has its origins
in a historical link between the Lincolnshire Agricultural Machinery
Manufacturers Association (LAMMA) and Abimaq. UKTI EM has been
trying to get a reciprocal exhibiting arrangement going between
these two organisations but has not managed to get to any concrete
results so far.
WEST MIDLANDS
H16. An "Exporting to Brazil"
event was held at the University of Birmingham on 6 June 2006.
This event was organised by the Birmingham Business School in
conjunction with Birmingham Chamber, UKTI and the Embassy of Brazil.
The purpose of the event was to present the findings of a research
project conducted by university academics, which involved thirty-two
UK SMEs, either already exporting to Brazil or actively attempting
to enter the market. This interactive event included presentations
from university academics, UK company case studies and an introduction
to export advice and support from UKTI.
H17. West Midlands companies will also be
invited to join a market visit to Brazil (and possibly Argentina)
being led by Birmingham Chamber on behalf of the region. The timing
of this visit is yet to be confirmed, though it is expected to
take place during March 2007. This will be a cross-sector market
scoping opportunity, primarily for West Midlands based companies.
NORTH WEST
H18. North West ITT has a dedicated Americas'
Trade Unit in our Merseyside team and has a renowned Brazil specialist
on the team who has an extensive network around the UK and Brazil.
The team has helped 100 companies develop their business in Brazil
in the last year, taken two missions and overseas trade fair groups,
attracted two inward delegations from the Brazilian business-based
research and development foundation (CESAR) and Recife and worked
with UNIDO on an inward environmental sector group from Porto
Alegre.
H19. The team has close links with the Brazilian
Embassy in London and was invited to chair a business delegation's
breakout sessions during the President of Brazil's visit in March
2006.
NORTHERN IRELAND
H20. Northern Ireland's trade contacts with
Brazil have been limited. From the mid-1990s to 2002, Invest NI
organised nine visits to Brazil involving over 100 companies.
To support NI companies in Brazil during this period, Invest NI
retained the services of an in market advisor to manage trade
missions, undertake market research, lead regeneration projects
and networking events.
H21. However, following a review of Invest
NI's last visit to Brazil in 2002, it was recommended to suspend
visits to the region due to decreasing market opportunities for
local companies and a fall in company demand for research and
visits. This decision was further borne out by NI's annual export
figures that demonstrated a 68% decline in exports to Brazil between
2003 and 2005.
H22. In line with Invest NI's policy to
review export market opportunities annually it was proposed that
for the operating period 2006-07, Brazil would be promoted as
an emerging market offering a range of opportunities for NI businesses.
To support this decision a seminar on Business Opportunities and
Doing Business in Brazil is scheduled for November 2006. Further
consideration is also being given to re-appointing a market advisor
for Brazil to support NI businesses interested in exporting to
the region.
WALES
H23. International Business Wales (IBW)
is the new merged organisation encompassing the former WalesTrade
International and the international arm of the Welsh Development
Agency.
H24. Brazil has certainly been on IBW's
radar for some years and continues to be, having taken 29 companies
to São Paulo since 2001.
H25. In February 2005 the First Minister
of the Welsh Assembly, Rhodri Morgan hosted a visit of the Argentine
Ambassador to Cardiff, this visit followed on the heels of a successful
mission to Brazil for Welsh companies.
H26. A total of six Welsh companies have
availed themselves of our International Business Opportunities
(IBO) Programme which aims to provide comprehensive in-market
support to key business client companies. IBW's in-market consultant
Renate Buzor is known to UKTIs overseas team and is currently
working with two companies looking to identify partners in Brazil.
H27. IBW has attended various promotional
events relating to Brazil as a quality expanding market, the most
recent of which was a UKTI event aimed at raising awareness of
the Aerospace Industry and the great opportunities that presents
for British industry.
H28. IBW is trying to keep abreast of the
opportunities afforded by Brazil's economic growth, but has to
accept in the short term that Brazil is not a high priority with
our companies. Major resource needs to go into promoting the market
and its opportunities in order to help remove the' fear factor'
of doing business in that country.
H29. From an inward investment point of
view IBW has no representation in the country.
SCOTLAND
H30. Scottish Enterprise's economic development
strategy focuses on priority industries, as opposed to geographic
markets and as a result, our interest in the economic and trade
opportunities afforded by the Brazilian market will be where these
are a match with our priority industries:
H31. As this is a relatively new approach
for Scotland, we are still developing strategies for, and with,
these industries and as these evolve we may indeed have a developing
interest in Brazilian trade and/or investment for these sectors.
H32. We have already highlighted Brazil
as a key market opportunity for Scottish companies operating in
the Energy sector, particularly those that are addressing the
offshore oil and gas market, one of Scotland's key strengths.
As an example through our international arm, Scottish Development
International, we have, over the last year, assisted 24 Scottish
companies in this sector with their approach to Brazilian market
entry.
H33. This has been primarily through a joint
project with UKTI in appointing a shared market consultant in
Macae, Brazil who supports these companies and researches opportunities
in the Brazilian offshore oil and gas industry that might be relevant.
We have also used trade missions, learning journeys and exhibitions
(eg Offshore Brazil & Deepwater Offshore Technology Exhibition)
as a mechanism to assist companies. We plan to continue such work
throughout 2006-07.
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